WASHINGTON (AP) — The Justice Department announced Thursday multiple arrests in a series of complex stolen identity theft cases that officials say are part of a wide-ranging scheme that generates enormous proceeds for the North Korean government, including for its weapons program.
The conspiracy involves thousands of North Korean information technology workers who prosecutors say are dispatched by the government to live abroad and who rely on the stolen identities of Americas to obtain remote employment at U.S.-based Fortune 500 companies, jobs that give them access to sensitive corporate data and lucrative paychecks. The companies did not realize the workers were overseas.
The fraud scheme is a way for heavily sanctioned North Korea, which is cut off from the U.S. financial system, to take advantage of a “toxic brew” of converging factors, including a high-tech labor shortage in the U.S. and the proliferation of remote telework, Marshall Miller, the Justice Department's principal associate deputy attorney general, said in an interview.
The Justice Department says the cases are part of a broader strategy to not only prosecute individuals who enable the fraud but also to build partnerships with other countries and to warn private-sector companies of the need to be vigilant — and not duped — about the actual identities of the people they're hiring.
FBI and Justice Department officials launched an initiative in March centered on the fraud scheme and last year announced the seizure of more than a dozen website domains used by North Korean IT workers.
“More and more often, compliance programs at American companies and organizations are on the front lines of protecting our national security,” Miller said. "Corporate compliance and national security are now intertwined like never before.”
The Justice Department said in court documents in one case that more than 300 companies — including a high-end retail chain and a “premier Silicon Valley technology company” — have been affected and that more than $6.8 million in revenue has been generated for the workers, who are based outside of the U.S., including in China and Russia.
Those arrested include an Arizona woman, Christina Marie Chapman, who prosecutors say facilitated the scheme by helping the workers obtain and validate stolen identities, receiving and hosting laptops from U.S. companies who thought they were sending the devices to legitimate employees and helping the workers connect remotely to companies.
According to the indictment, Chapman ran more than one “laptop farm” where U.S. companies sent computers and paychecks to IT workers they did not realize were overseas.
At Chapman’s laptop farms, she allegedly connected overseas IT workers who logged in remotely to company networks so it appeared the logins were coming from the United States. She also is alleged to have received paychecks for the overseas IT workers at her home, forging the beneficiaries’ signatures for transfer abroad and enriching herself by charging monthly fees.
Other defendants include a Ukrainian man, Oleksandr Didenko, who prosecutors say created fake accounts at job search platforms that he then sold to overseas workers who went on to apply for jobs at U.S. companies. He was was arrested in Poland last week, and the Justice Department said it had seized his company's online domain.
A Vietnamese national, Minh Phuong Vong, was arrested in Maryland on charges of fraudulently obtaining a job at a U.S. company that was actually performed by remote workers who posed as him and were based overseas.
It was not immediately clear if any of the three had lawyers.
Separately, the State Department said it was offering a reward for information about certain North Korean IT workers who officials say were assisted by Chapman.
And the FBI, which conducted the investigations, issued a public service announcement that warned companies about the scheme, encouraging them to implement identity verification standards through the hiring process and to educate human resources staff and hiring managers about the threat.
Associated Press writer Frank Bajak in Boston contributed to the report.
FILE - The seal for the Justice Department is photographed in Washington, Nov. 18, 2022. The Justice Department has announced three arrests in a complex stolen identity scheme that officials say generates enormous proceeds for the North Korean government, including for its weapons program. (AP Photo/Andrew Harnik, File)
DETROIT (AP) — Byron Buxton hit a home run and a double, Christian Vázquez had a homer and three hits and the Minnesota Twins beat the Detroit Tigers 9-3 on Friday night.
“I think everybody put something on the table to win this game,” said Vázquez, who has three of his five homers this season against the Tigers. “When I swing at pitches at zone, I get different results. I feel good and I have confidence in myself.”
Pablo López (9-7) allowed two runs on six hits in seven innings, striking out seven.
“A lot of my stuff got better toward the end of my outing,” he said.
Tigers starter Keider Montero (1-4) allowed six runs on eight hits in five innings.
With only three healthy starters, Tigers manager A.J. Hinch had to stay with Montero even after he allowed three homers in the first two innings.
“He was going to be out there,” Hinch said. “It's not easy right now — we have been putting together some bullpen games and there are some on the horizon, so Keider had a long leash. With three solo homers, we were still in the game.”
Buxton and Trevor Larnach gave Minnesota a 2-0 lead with back-to-back homers in the first, and Matt Wallner added a home run in the second.
Javier Báez hit his second homer in as many days to make it 3-2 in the third.
“I'm feeling good at the plate,” said Báez, who is hitting .179 with three homers. “I've been working a lot to play better, and if I can stay hot, I can have a big second half.”
The Twins regained control with three runs in the fourth.
Willi Castro knocked in two with a single to left and took a big turn around the bag, prompting second baseman Colt Keith to throw to first. The Tigers were wearing their black City Connect jerseys and the only person wearing that color at first was umpire Mike Muchlinski. Keith's throw sailed into Minnesota's dugout, allowing Castro to take third. He scored on Buxton's double to left.
“That's a tough inning when we've got two out, especially after (Báez) gets us back into the game with the homer,” Hinch said. “I haven't talked to Colt, but I think that's down to inexperience — I don't think Bligh (Madris) needed to travel with the runner. He could have stayed (at first), which is probably why he was trying to get back.”
Vázquez hit a two-run homer off Joey Wentz to make it 8-2 in the sixth.
The Tigers loaded the bases with no one out in the seventh, but Gio Urshela grounded into a force at the plate before Báez and Wenceel Pérez popped out.
TRAINER'S ROOM
Twins: Activated 3B Royce Lewis (adductor strain) from the injured list and optioned C Jair Carmago to Triple-A St. Paul. Lewis came into the game hitting .292 with 10 homers and 18 RBIs in 24 games.
Tigers: Placed All-Star OF Riley Greene (hamstring) on the injured list and recalled UTL Ryan Vilade from Triple-A Toledo. Greene has been injured in each of his first three seasons, limiting him to 293 games.
UP NEXT
The teams play the second game of the series on Saturday, with Tigers ace LHP Tarik Skubal (11-3, 2.34) facing Minnesota RHP Joe Ryan (6-6, 3.65).
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Minnesota Twins center fielder Byron Buxton misplays the double hit by Detroit Tigers' Matt Vierling during the seventh inning of a baseball game, Friday, July 26, 2024, in Detroit. (AP Photo/Carlos Osorio)
Minnesota Twins pitcher Caleb Thielbar throws during the ninth inning of a baseball game against the Detroit Tigers, Friday, July 26, 2024, in Detroit. (AP Photo/Carlos Osorio)
Minnesota Twins' Christian Vazquez (8) is greeted at home plate after a two-run home run during the sixth inning of a baseball game against the Detroit Tigers, Friday, July 26, 2024, in Detroit. (AP Photo/Carlos Osorio)
Detroit Tigers pitcher Joey Wentz throws during the seventh inning of a baseball game against the Minnesota Twins, Friday, July 26, 2024, in Detroit. (AP Photo/Carlos Osorio)
Detroit Tigers pitcher Will Vest throws during the seventh inning of a baseball game against the Minnesota Twins, Friday, July 26, 2024, in Detroit. (AP Photo/Carlos Osorio)
Detroit Tigers' Javier Baez is greeted at home plate by Carson Kelly after Baez's two-run home run during the third inning of a baseball game against the Minnesota Twins, Friday, July 26, 2024, in Detroit. (AP Photo/Carlos Osorio)
Detroit Tigers pitcher Joey Wentz throws during the sixth inning of a baseball game against the Minnesota Twins, Friday, July 26, 2024, in Detroit. (AP Photo/Carlos Osorio)
Detroit Tigers pitcher Joey Wentz walks next to the mound as Minnesota Twins' Christian Vazquez rounds the bases after a two-run home run during the sixth inning of a baseball game, Friday, July 26, 2024, in Detroit. (AP Photo/Carlos Osorio)
Minnesota Twins' Christian Vazquez is greeted in the dugout after a two-run home run during the sixth inning of a baseball game against the Detroit Tigers, Friday, July 26, 2024, in Detroit. (AP Photo/Carlos Osorio)
Minnesota Twins center fielder Byron Buxton misplays the double hit by Detroit Tigers' Matt Vierling during the seventh inning of a baseball game, Friday, July 26, 2024, in Detroit. (AP Photo/Carlos Osorio)
Minnesota Twins' Byron Buxton approaches home plate after a solo home run during the first inning of a baseball game against the Detroit Tigers, Friday, July 26, 2024, in Detroit. (AP Photo/Carlos Osorio)
